9911796707
|
Home
Issues: Challenge to notice issued by ITO under sections 226 and 227 of the Constitution of India; Jurisdiction of ITO to initiate proceedings under section 147(a) of the Income Tax Act, 1961; Presence of relevant material for ITO to believe income escaped assessment.
Analysis: The petitioner challenged a notice issued by the Income Tax Officer (ITO) dated January 30, 1970, under articles 226 and 227 of the Constitution of India. The petitioner contended that once an assessment has been completed based on the facts disclosed in the return and accepted after investigation, the ITO cannot initiate proceedings under section 147(a) of the Income Tax Act, 1961. The court referred to a previous judgment in Kirpa Ram Ramji Dass v. ITO and rejected this contention, stating that even if the assessee disclosed material facts and they were found to be correct, it does not prevent the ITO from initiating proceedings under section 147(a). Another contention raised was the lack of relevant material before the ITO to believe that the income in question had escaped assessment under section 147(a) of the Act. The court found meritless the argument that there was no relevant material, citing specific averments in the return that indicated otherwise. The court highlighted a case where a creditor admitted to engaging in hawala business and that the loans given to various parties, including the petitioner, were not genuine. This revelation provided the ITO with sufficient grounds to believe that income had escaped assessment. The court dismissed the writ petition, stating that there was no merit in the petitioner's arguments. The court directed the ITO to proceed with reassessment in accordance with the law. Additionally, the petitioner's request for a certificate for leave to appeal to the Supreme Court was declined, as no sufficient case was made out for granting the certificate.
|
